In response to a column that appeared in The Los Angeles Times, NIRS submitted a letter to the editor rebutting claims that Americans are sufficiently prepared for retirement.
In the letter, NIRS indicates that the assertions is the column are misleading at best and misleading at worst. The letter points to U.S. Census Bureau data reveal that the median retirement account balance among working Americans is $0.00, while 57% do not own any retirement account assets in a 401(k) plan or individual retirement account. For those nearing retirement, it’s also a grim outlook. Some 68% of individuals 55 to 64 only have retirement savings of less than one times their annual income, which they’ll have to make last for decades.
The letter also highlights that compounding the retirement savings shortfall is rising medical expenses Americans will face as they age.
The response indicates that retirement crisis is solvable, but only when we acknowledge the problem and take action now to give Americans access to high-quality, low-cost retirement plans with professional investment management, risk pooling and lifetime payments.
Read the full letter here.